Subject:
Title
Intent to Adopt FY2016-17 Water and Sewer Rates.
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EXPLANATION AND SUMMARY:
A Water and Sewer Rate Study was conducted in-house two years ago. One goal was to provide financial stability to the Town's water and sewer system by maintaining a positive cash flow for operations and debt service. The rate study was based upon three years of actual expenditures and three years of actual usage and billings from the Turchetta Software System. The rate study evaluated fixed and variable costs system- wide.
The Water and Sewer Rate Study was based on best practices from the American Water Works Association. In order to tie to Town Council initiatives, resource conservation was incentivized in the model. The Finance Department updated the rate study in January and February 2016. The intent of the rate study was to implement rate adjustments every two years as long as forecasted revenues were trending in actuals. This is the year for adjustments to rates, which is incorporated in the recommended rates below.
Consumption rates are increased by $0.66/1000 gallons. The average Vienna resident uses 16,000 gallons per quarter, so this change amounts to a $10.56 increase per quarter.
Recommended rates for implementation on July 1, 2016 are as follows:
Residential Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 16,000 gallons $4.98 per 1000 gallons
16,001 - 32,000 gal $5.42 per 1000 gallons
32,001 plus gallons $6.27 per 1000 gallons
Sewer Consumption Charge 0 - 16,000 gallons $6.09 per 1000 gallons
16,001 - 32,000 gal $6.59 per 1000 gallons
32,001 plus gallons $7.64 per 1000 gallons
Residential Base Fee: $15/quarter
Commercial Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 90,000 gallons $4.98 per 1000 gallons
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